Corporate drivers of market liquidity on the Warsaw stock exchange

Renaud Beaupain and Robert Joliet ()

International Economics, 2011, issue 125, 83–104

Abstract: Following the adoption of a liquidity support programme by the Warsaw Stock Exchange in June 2008, this paper investigates the corporate financial signals on which firms can rely in their communication to investors to enhance the liquidity of their securities in the market. More specifically, this paper takes a new look at the corporate determinants of the liquidity of the shares of Polish firms listed on the WSE. Our analysis notably confirms the role played by corporate financial signals in explaining the cost of transacting and the depth of this market. The reported evidence further identifies the price- to-book ratio as a discriminating variable affecting liquidity in the equity segment of the Exchange.

Keywords: MARKET LIQUIDITY; TRANSACTION COSTS; MARKET DEPTH; CORPORATE FINANCIAL SIGNALS; WARSAW STOCK EXCHANGE (search for similar items in EconPapers)
JEL-codes: C21 G15 G30 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (3)

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Working Paper: Corporate drivers of market liquidity on the Warsaw Stock Exchange (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:cii:cepiie:2011-q1-125-4

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